The day Harold Wilson and Barbara Castle briefed the Cabinet on the white paper to control the unions, cleverly titled "In Place of Strife" was the beginning of the end of the Premiership of Harold Wilson. It was a cold spring day, there was less than two years to go until the next general election. Many remember the 1st of May 1969 as the day that Labour re-invented itself.

Harold Wilson had long been tired of the problems the unions which had dogged his time in Downing Street; the worst had been the Seamen's strike in 1966 which had badly affected the Prime Minister's relations on maritime issues. He had long sought assistance and that came from his close ally and protege, the Secretary of State for Employment and Productivity Barbara Castle. It was Castle's department that drew up the paper and the one that would cause the controversy and strife within the Government that unless for one woman, threatened to bring down the Labour Party. The entire crisis began on the 1st of May at the meeting where Wilson and Castle introduced the paper. Some supported it, others were in uproar. The opposition was led by the Home Secretary, Jim Callaghan who along with colleagues such as Fred Peart, Michael Stewart and Richard Crossman began a blitzed argument with Castle who was supported by the Prime Minister along with Roy Jenkins, Denis Healey and Ted Short. The meeting ended abruptly after a long shouting match when Jim Callaghan stormed out and tendered his resignation the same day and announced he would challenge for the Leadership of the Labour Party.

Immediately, the white paper already encountered it's first problem, a dissent by left-wing socialists led by Callaghan. The resignations followed when Peart and Crossman quit from their roles as Leader of the House of Commons and Secretary of State for Social Services the next day. Wilson would still not back down, he told Castle to keep the paper out of view to the House until he had resolved the leadership crisis, but facing a rebellion from the socialists, Harold Wilson resigned on the 6th of May 1969, he said he would stay until a successor could be elected and the successor would have a huge task.

- Extract from "In Place of Strife", a 2007 BBC documentary surrounding the Labour Government's of the 60's and 70's presented by Andrew Marr
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"It is clear now that I do not have the confidence of the left-wing elements of the Labour Party and with the crisis following the resignations of Jim Callaghan, Fred Peart and Richard Crossman, I have informed Her Majesty that it is my intention to resign as Prime Minister and Leader of the Labour Party pending the election of a successor. Thank you"
- Harold Wilson's brief statement outside Number 10, 6th May 1969
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The Candidates"I'm standing for Leader of the Labour Party to restore confidence, stability and prudence to Government." - Chancellor of the Exchequer Roy Jenkins

"I intend to become Prime Minister to restore the true values of the Labour Party to the champion of working class people" - Former Home Secretary Jim Callaghan

"I'm standing up for the unions and for the industries of Britain against the top bureaucratic levels with this crisis." - Minister of Power Roy Mason

"I am running for Leader of the Party because I feel I can offer consenus and understanding between the warring wings of the party" Minister of Technology Tony Benn
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Roy Jenkins was elected to the Labour Leadership because he was seen as a safe pair of hands, his policies at the Treasury had pleased the left-wing while his defence of Barbara Castle's white paper had pleased those tired of union dominance in the party. Many looked forward to his reign but they all knew that tough times lay ahead and it would be wise for him to take extreme caution in how he would handle the economy. That evening, Jenkins made his first appointment, that of the person to replace him as Chancellor. Peter Shore, the previous Secretary of State for Economic Affairs was a clear choice and one that ensured continuity and strength at the Treasury. John Diamond was promoted from Chief Secretary to the Treasury to President of the Board of Trade with Bill Rodgers becoming Chief Secretary. The new Prime Minister abolished the DEA and gave the responsibilities over to the Treasury making Shore head of the most powerful department in Cabinet.

Barbara Castle's promotion to the Home Office was well deserved and her reputation as Labour's sharp tongued battleaxe saw her face of many critics, she replaced the Acting Home Secretary Lord Stonham who remained as Minister of State. Michael Stewart remained in post as Foreign Secretary to appease the Callaghan wing while Crossman and Peart were offered the minor posts of Arts and Technology Minister's but both declined. Tony Benn was promoted to replace Barbara Castle at Employment. In his first Cabinet, Prime Minister Jenkins had shown he was willing to press ahead with his own choices and not to bend backwards to the left-wingers. A disgruntled and embarrassed James Callaghan stayed on the backbenches

- Extract from "In Place of Strife", a 2007 BBC documentary surrounding the Labour Government's of the 60's and 70's presented by Andrew Marr
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The new Prime Minister abolished the DEA and gave the responsibilities over to the Treasury making Shore head of the most powerful department in Cabinet.

The Treasury has always been the most powerful department. That's why the Prime Minister is officially the First Lord of the Treasury, (PM is only a nickname and was originally an insult). Otherwise this is interesting, Jenkins was the only person in Labour who could have done something and this might butterfly away much of the unpleasantness of the 80's.

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Originally Posted by Jape

I would shudder at this but I can't get over Thande's insinuation there's a moderately popular Kinnock sex doll out there.

A great idea for a TL, but I must quibble Callaghan being a leader of the socialist left - IOTL he was a post-Gaitskellite Social Democrat and one of the more right-of-centre colleagues of Wilson's centrist brand of leftism. Why is he the determined champion of working people now?

I agree with Meadow. Callaghan was one of that era's Labour centrists, along with Jenkins and Healey, but I do remember reading that Callaghan made an exception for industrial reform. Apparently Callaghan opposed the White Paper IOTL. Also, why would Wilson quit? He could contest the leadership election or go for snap dissolution. The Labour figure I'm looking for hasn't been elected to Parliament yet, and their name is not Tony Blair or Gordon Brown.

I did a lot of research into the battle over the white paper and I thought it best that Callaghan should quit over it, being a leftist on the issue of the unions and industrial reform. Privately Callaghan believed he could beat Jenkins due to his centrist and leftist roots but many in the Labour Party were angry at the way he had resigned and thrown their chances of winning the next election into disarray. I don't intend for him to become leader of the left in Parliament, just a nuisance backbencher who may or may not return to Cabinet.

Wilson realised at the time that while Callaghan may not have sparked a left-wing revolution, Peart and Crossman could have done along with Roy Mason and that it was best he step aside rather than face a defeat to Ted Heath.

Chancellor of the Exchequer – Peter Shore
Secretary of State for Foreign and Commonwealth Affairs – Michael Stewart
Secretary of State for the Home Department – Barbara Castle

President of the Board of Trade – John Diamond
Secretary of State for Technology and Industry[1] – Edward Short
Secretary of State for Employment and Productivity – Tony Benn

Secretary of State for Local Government [2] – Judith Hart
Secretary of State for Education and Science – Alice Bacon
Secretary of State for Social Services – David Ennals
Secretary of State for Transport [3] – Richard Marsh*

Secretary of State for Scotland – William Ross*
Secretary of State for Wales – George Thomas*
Attorney General – Sir Elwyn Jones*
Parliamentary Secretary to the Treasury and Chief Whip – Robert Mellish*
Chancellor of the Duchy of Lancaster and Minister for Industrial Relations [5] – Roy Mason

[1] – This new post was created from the previous posts of Minister for Technology and Minister of Power
[2] – Office re-named from Secretary of State for Local Government and Regional Planning
[3] – Office re-named and given the full title of Secretary of State for Transport
[4] – Office restored to Cabinet level
[5] – Newly created post of Industrial Relations Minister was merged with Duchy of Lancaster to provide Mason with a roving brief in the Treasury, Trade and Industry.

*Indicates that the Minister remained in post from the Wilson Ministry

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The first decision taken by the Jenkins government was about the Budget which the then Chancellor had been due to present in five weeks to the House of Commons. The new Chancellor Peter Shore had to make some tough decisions which the government were keen to avoid especially due to the next election being a year off. The Treasury and Number 10 held a meeting on the 29th of May where it was agreed upon the fact that they would not raise tax on the working classes in order to avoid another internal government war amongst the left and centrist wings. Instead, they proposed an "emergency stimulus tax saving", in layman's terms an increase on tax for the middle and upper classes for all those earning above £3,000 a month (£36,000 a year). Jenkins was keen to avoid any kind of uproar and asked Shore to include solemn and sincere statements reflecting sacrifice needed by the people of Britain while maintaining a need for protecting the poorest in society.

Jenkins sought at the meeting to invoke that famed JFK line "Ask not what your country can do for you but what you can do for your country" and made a note to his political secretary, Robin Butler who he had taken with him from the Treasury to replace Marcia Williams. While having been regarded as a tough Chancellor, Jenkins did not want to make swinging cuts to public spending and instead set about ways of saving money by cheapening expenditure. He told Shore to do this, with any view taken it was certain Shore would not be a domineering Chancellor, more of a whipping boy.

- Extract from "The Prime Minister's Ear", a telling memoir written by Richard Wilson, former Civil Servant and Political Advisor to Roy Jenkins
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"I trust that Roy will take full precaution in how he handles the economy. He has certainly taken a risk by naming Peter Shore as Chancellor" - Offhand comment made by Shadow Home Secretary Quintin Hogg, May 31st 1969

"The Government will not be raising tax on the working classes and we will be seeking to make people with low incomes better off in our Budget while we must be prudent and introduce emergency taxes to help our economy, we must protect the working classes and the low incomes from cuts." - Comments made by Prime Minister Jenkins in a television interview, June 2nd 1969
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Budget Highlights
June 12th 1969
BBC

Quote:

- Taxation was raised via an "emergency stimulus tax saving" which affected the upper classes as well as some middle-income families in London. The government left a small increase in tax to other middle-income families
- Lower income families were protected from tax rises
- The energy and environment budgets were cut by 4%
- The prisons budget was cut by 3% with all rehabilitation programs scrapped
- The "In Place of Strife" white paper was introduced with full effect

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"This is a shameless budget, one that shamelessly attacks the middle income families that make up the backbone of Britain. Hardworking nurses, teachers, office-workers will now see their savings slashed by these fringent cuts and tax rises hidden behind the needs of emergency. Forget not, it was this Government that devalued the pound and has thrown the economy into danger. It is utterly shameful" - Angry retort by Shadow Chancellor Iain Macleod in response to the 1969 Budget in the House of Commons

The Budget passed naturally of course, but not without scrapes and bruises. Jim Callaghan made a speech in Parliament praising the Government for it's economic management but took a firm line on "In Place of Strife" and warned of the damage it could do. Some left-wingers rebelled, in particular Peart and Crossman with about seven others. The rest of the party used it's 96-seat (87 with the nine votes against) to pass the Budget; Roy had managed it rather well; he had successfully convinced the working classes he was there friend while his solemn attitude on television helped the middle classes somewhat to understand his actions. The Opposition had been given a shed load of political ammunition for the duration though, Macleod in particular.

The next order of business for the Government was going to be a Prison Rehabilitation Unit Act, designed to increase and create units in prisons for minor offenders to be rehabilitated from their petty ways. It was a relatively wolly piece of legislation and one that passed quickly thanks to Barbara Castle's sharp defence of it in Parliament. After this success, Roy celebrated two month's in office, however on that day, the 18th of July 1969, he declared his next piece of legislation for after the summer recess, the House of Lords Reform bill which ruffled the feathers of every peer in the upper chamber. To be sure, we had a lot of work to do.

- Extract from "The Prime Minister's Ear", a telling memoir by Richard Wilson, Political Advisor to Roy Jenkins
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The policy of Roy Jenkins on Europe was one of a good decent relationship and the Prime Minister was keen to impress European leaders with his prudent economic savings, at the annual European summit at the end of July the Prime Minister faced pressure to submit to a Common Currency for Europe; while Jenkins had leanings toward that area while Chancellor, he knew that the British public would not accept it and especially so close to the next general election. The new French President, Georges Pompidou along with German Chancellor Kurt Georg Kiesinger made it clear that they would be opposed to such anti-sovereign measures. Jenkins was forced to bury his leanings and go along with them and the British public.

In Cabinet, the Chief Secretary to the Treasury, Bill Rodgers proposed that the government wage a "war on waste" within it's own perimeters of Whitehall and that they should be promoting "leaner, fitter government" in comparison to the "aged waste of a Tory government". All of these soundbites were used by Cabinet Minister's in TV interviews during that week and culminated when Chancellor Peter Shore announced a comprehensive "Leaner, Fitter Britain" policy where the government would seek to make savings on administrative waste. In order to accomplish this, the Government created the Department of Administrative Affairs, a new Department designed to review and control government expenditure and also to oversee the processes and contracts of Government. In essence, the new Department had been given some powers from the Treasury and Cabinet Office to deal with the day to day running of Government.

The new Department came into force on the 1st of September 1969 with Edmund Dell and David Owen as junior Minister's. The new Secretary of State however was a surprise, James Callaghan returned to the Government in the post of Secretary of State for Administrative Affairs. As one Cabinet Minister put it, "Better to have him in the tent pissing out than outside the tent pissing in" - Extract from "In Place of Strife", a 2007 BBC documentary made by Andrew Marr

Newly appointed Administrative Affair's Ministers James Callaghan and David Owen outside the DAA offices, 1st September 1969
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This move by Roy Jenkins was unseen and had plenty of room for maneuver for us, the Opposition mostly. Firstly, to combat waste he had created a new Department while meekly claiming it would be the "broom of Whitehall", I believe it was Quintin Hogg who claimed that the new Department was the biggest waste of the government, after the Prime Minister that is. Still, we needed somebody who could combat James Callaghan in the role. I decided to move Geoffrey Rippon from Shadow Defence to Shadow Administrative Affairs, Peter Walker moved from Shadow Local Government to Shadow Defence. Finally, I completed the mini-reshuffle by naming Margaret Thatcher, our Shadow Fuel Minister to the Shadow Local Government post. As I said to my PPS, Joel Nordlander "We needed a statutory woman in the Shadow Cabinet to face the three Labour had, and I felt she fit the bill quite well." - Extract from "Yachting and Politics", the memoirs of Edward Heath
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Labour Lead of 6 pointsResult at a General Election: Labour Majority of 63

I'm loving this.

Can I suggest putting the SNP vote down a bit though? As it stands, you'd have them on over 75% of the Scottish Vote and Plaid on around 100% of the Welsh vote. Also, it tallies up to 103% of the vote overall.

Re the earlier point Meadow made, understanding the Labour Party in this period doesn't seem to be a simple distinction of right vs left. Callaghan and Jenkins are both described as members of the right wing but for different reasons. Jenkins was a political centrist and social democrat in most regards but is of course known for his strong social liberal agenda. Callaghan on the other hand was close to the unions, having his background there, but this also made him close to traditional working class values and sceptical of Jenkinsite social attitudes. Tony Crosland is often described as the other chief social democrat or right-winger among senior Labour figures of this period, but that doesn't mean he didn't have a strong class warfare agenda. I think perhaps things are further confused by the modern Labour Party and how it informs people's sensibilities - we now have Ed Miliband called a left-winger, when in the Labour Party of the 1960s he would be considered enormously far to the right.

So to sum up that rambling paragraph, Callaghan was a political enemy of Jenkins but the reasons behind that cannot be summarised simply as saying one was left wing and one was right wing.

I just want to take a small amount of time out of your evening to speak with you, people of Britain about a very important matter about the future of our country. As you may already know, the year 1969 has seen the USA place a man on the moon, the Soviets are close to such a development. Now, during the summer months I have been in intense planning sessions with the Department of Technology and Industry about the creation of a British Space Council and the creation of Britain's first space shuttle, to be appropriately titled the Queen Elizabeth the Second Shuttle. After these planning sessions we have produced a budget, time-frame and launch date for the QE2 Space Shuttle which we hope will be able to repeat the successes of USA and USSR in space exploration. Now, as many of you will be wanting to know these crucial details, I shall now give them to you.

The budget for this project is £5 billion pounds which has been used from the DTI's science budget and the productivity budget of the Department of Employment, we aim to use this money with potential room for more to build the best and most efficient space craft and we predict that in 1979, the budget will be in excess of £10 billion pounds providing increase budgets for the DTI, DEP and private investment. We predict that the QE2 Space Shuttle should be completed by 1972 and ready for launch by 1974, with a projected launch date of August 1st 1974. This will be an unmanned mission to test the space craft, in which upon it's return it will be refurbished and ready for a manned mission on February 1st 1975. With some hopeful success, the British Space Council will hope to launch more space shuttles, namely the Prince of Wales, William Shakespeare and Winston Churchill shuttle's in 1976, 1978 and 1980 respectively.

While some may call this irresponsible in time of economic prudence, I feel it is perfectly reasonable and a good future investment that will guarantee economic and international merit for our great nation. While it is some time before any of this will take place, I have begun proceedings by creating the British Space Council, an independent body based out of the Cabinet Office that will be working closely with the Foreign Office, Department of Technology and Industry and the Department of Employment and Productivity. To head this new Council, I have appointed former Prime Minister Harold Wilson to head this, he has agreed to resign from Parliament and accept a peerage so he can fully liaise between the Commons and Lords on this crucial project.

So, I hope you have had time to think and form an opinion on this project and without further adue, I shall leave you to get on with your evening.

"What do we know about this Roy Jenkins? Aside from the standard biography stuff?" asked Premier Alexei Kosygin, placing down the copy of Who's Who 1969 that had previously adorned the long oak bookshelf on the left hand side of his office.
"He is a moderate reformer, he is still relatively popular in Britain despite the economic problems and the internal government strife. He's made some sensible moves by appointing Callaghan, also a moderate to this new Administrative ministry to cut down on waste. Though he has excluded the left from his decision making" replied the Head of KGB Yuri Andropov, he was seated in a plush leather armchair sipping a glass of vodka
"The Conservative Opposition appear tired and out of date, Mr Heath runs the opposition poorly and this also contributes to Jenkins' popularity" added the Foreign Affairs Minister Andrei Gromyko, he was perching on his armchair in front of the Premier's desk and was not drinking unlike Andropov
"So he will be re-elected, no?" asked the Premier, he sat in the high-backed brown leather chair, his thin and hawk like frame peering at the two men
"Most likely yes, from what our agent inside Downing Street tells us, Jenkins will call an election for May or June of 1970 to catch the opposition off-guard. Once he is re-elected, he will have to sort out the economy but will be free to pursue his stringent reforms" said Andropov
"Plus the space program, from our source inside their program he says that it can be ready for the alleged time-frame and they can get a man on the moon by 1975." said Gromyko
"But surely he will be gone by then?" asked Kosygin
"Perhaps, but Prime Minister's have lasted longer than six years. With the economy it could be screwed up and the reforms can fail resulting in his resignation or loss of a further election. If that happens then the Conservatives will be back, but not with Edward Heath" reported Gromyko, looking in his thin manilla folder that had been prepared by his secretary
"Then who?" Kosygin asked, he rose from his desk and faced the window behind him, gazing out into Red Square
"We have no men inside the Opposition, but the Downing Street agent says that when Heath has to go if he loses in 1970, it will either be Reginald Maudling, Iain Macleod or William Whitelaw who will win the Party Leadership. We predict it will be Maudling, but many will choose Macleod." said Gromyko, closing the folder
"So, since neither party will stop this program, we will have to resort to our own methods of stopping it" muttered Kosygin, he turned to face the two men who stood, he glanced at Andropov
"Yuri, speak to our men at the industrial bureau, have them go to Britain and meet with our man there" he ordered
The two men nodded and left the Premier's office, Kosygin turned and continued his watchful eye over Red Square.
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Willy Brandt celebrating receiving a majority of votes for the Social Democrats and Free Democrats in the German Parliamentary Election, 28th September 1969

The Days of Rage protests, October 8th to 10th 1969
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Willy Brandt sat in his Parliamentary Office, he had been receiving calls of congratulation from foreign leaders all day, however the call he received from Prime Minister Jenkins was most peculiar, "Guten tag, Herr Brandt" the call began, Jenkins had made sure to do the proper greeting
"Guten tag, Prime Minister. What can I do for you?" Brandt asked
"Well, firstly allow me to congratulate you on your victory in the elections and that I look forward to a healthy working relationship with you" he said, reading from the script being shown to him by Richard Wilson
"Thank you, Prime Minister. I hope we can move past the negatives of the past century and get our relationship back on track." replied Brandt
"Now, Willy once you take office I would like to extend an invitation for a state visit to Britain. Around sometime in November." Jenkins said
"That would be very good, what would you like to discuss" asked Brandt, hesistant
"That remains a matter of importance, not for a telephone discussion but we need to speak about our future defence and industry issues, if you see what I mean" replied Jenkins.

Willy Brandt hesitated for a moment and said "Then that will be most interesting, see you in November"
"Thank you, Willy" said Jenkins before the line stopped, there was a pause when Brandt put his phone down and he said to an aide "He means the space program doesn't he?"

Jenkins and Nixon will get along like Obama and Hillary, both of them hate each other's guts but are forced into a unity pact against the Soviets. I may have Roy send Harold over to Moscow on some "space related missions"

I feel there has been some mis-understanding, I meant that since 9 Labour MP's were against, the majority would be all of the Labour MP's bar nine voting for it meaning that it would be an 87 majority in terms of MP's. Obviously I wasn't able to explain fully in the pretext of a political memoir for which I apologise.

But I am interested. I assume Jenkins will win in 1970 - let's be honest, if he loses to Ted Heath, its a pretty boring TL - largely back on track. However passing 'In place of Strife' and Wilson standing down may butterfly away the problems Labour had in the late 1970s - which in itself could lead to a significantly different 1980's with perhaps a Callaghan government surviving past 1979.

You could mix it up and have Jenkins go for a 1969 election to confirm his mandate - I know this isn't really the done thing in British politics (Home, Callaghan, Major and Brown all hung on to grim death) but it gives you more scope to see a Heath 1969 to 1973 if you wanted.

I love British political Alternative Histories - So much scope for changes by not having fixed terms, just little tweaks here and there can have larger impacts down the line.... I'm still waiting for the TL of Tony Blair's first term in office 1996 to 2000 to be written!